November 14, 2014 09:40
The Defense Acquisition Program Administration is now eyeing Lockheed Martin for a multibillion dollar upgrade of the KF-16 fighter jets after firing BAE Systems of the U.K.
DAPA will bring up the issue of changing the contractor in a regular session next Wednesday, a government source said Thursday.
Lockheed Martin lost the 2012 bid to BAE Systems. A budget of W1.75 trillion (US$1=W1,097) has been earmarked to upgrade the radars, mission computers, and weapons systems of the country's 134 KF-16 fighter jets.
BAE, which was dropped for demanding huge amounts of extra money, could demand tens of billions of won for services already provided.
Earlier this week the government insisted the contract with BAE is only "on hold" until more reasonable terms can be agreed, but experts said the British company is effectively out of the frame.
The National Assembly's Defense Committee decided Tuesday to advise DAPA to put itself up for an audit over the scandal. The Board of Audit and Inspection is expected to investigate the agency starting early January.
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